NEW BRITAIN, Conn., Jan. 16 /PRNewswire-FirstCall/ -- The Stanley Works
(NYSE: SWK) announced that it has completed its previously announced
purchase of HSM Electronic Protection Services, Inc. ("HSM") from
Chicago-based private equity firm GTCR for $545 million cash. HSM, based in
Lisle, IL provides security alarm monitoring services and access control
systems to commercial customers.
The company financed the acquisition with proceeds from existing short
term credit facilities and a new $500 million 364-day bridge facility
entered into on January 8, 2007. The company remains committed to its
current credit ratings and, as previously announced, intends to refinance
this transaction with a combination of available cash, debt and
equity-linked convertible debt, which it believes will be consistent with
maintaining those ratings. The company does not anticipate the need to
issue common equity in the short term in order to achieve this objective.
Additional Information About The Stanley Works
The Stanley Works, an S&P 500 company is a worldwide supplier of
consumer products, industrial tools and security solutions for
professional, commercial, industrial and consumer use. More information
about The Stanley Works, including corporate press releases, can be found
at http://www.stanleyworks.com.
CAUTIONARY STATEMENT
Under the Private Securities Litigation Reform Act of 1995
Statements in this press release, including those regarding the
Company's intent to refinance the Acquisition with a combination of
available cash, debt and equity-linked convertible debt and to maintain its
current credit rating, are "forward looking statements" and subject to risk
and uncertainty.
The Company's ability to deliver the results described above (the
"Results") is based on current expectations and involves inherent risks and
uncertainties, including factors listed below and other factors that could
delay, divert, or change any of them, and could cause actual outcomes and
results to differ materially from current expectations. In addition to the
risks, uncertainties and other factors discussed below, the risks,
uncertainties and other factors that could cause or contribute to actual
results differing materially from those expressed or implied in the forward
looking statements include, without limitation, those set forth under Item
1A Risk Factors of the Registrant's Annual Report on Form 10-K and any
material changes thereto set forth in any subsequent Quarterly Reports on
Form 10-Q, those contained in the Registrant's other filings with the
Securities and Exchange Commission, and those set forth below.
The Company's ability to deliver the Results is dependent upon: (i) the
continued ability of the Company to access credit markets under
satisfactory terms; (ii) the Company's ability to successfully integrate
the HSM acquisition while limiting associated costs; (iii) the success of
the Company's effort to build a growth platform and market leadership in
Security Solutions; (iv) the Company's success at identifying and
developing new markets for Security Solutions; (v) the success of the
Company's efforts to manage costs; (vi) the Company's ability to generate
free cash flow and maintain a strong debt to capital ratio; (vii) the
Company's ability to identify and effectively execute productivity
improvements and cost reductions while minimizing any associated
restructuring charges; (viii) the Company's ability to obtain favorable
settlement of routine tax audits; (ix) the ability of the Company to
generate earnings sufficient to realize future income tax benefits during
periods when temporary differences become deductible; (x) the Company's
ability to negotiate satisfactory payment terms under which the Company
buys and sells goods, services, materials and products; (xi) the ability of
the Company's employees to adapt to changes made within the organization
and to meet or exceed expectations; (xii) the ability to continue
successfully managing and defending claims and litigation; (xiii) the
absence or mitigation of increased pricing pressures from customers and
competitors and the ability to defend market share in the face of price
competition; and (xiv) the Company's ability to continue improvements in
working capital, including inventory reductions and payment terms.
The Company's ability to achieve the results may also be affected by
external factors. These external factors include pricing pressure and other
changes within competitive markets, increasing competition, changes in
trade, monetary, tax and fiscal policies and laws, inflation, currency
exchange fluctuations, the impact of dollar/foreign currency exchange and
interest rates on the competitiveness of products and the Company's debt
program, the strength of the U.S. economy and the impact of events that
cause or may cause disruption in the Company's manufacturing, distribution
and sales networks such as war, terrorist activities, political unrest and
recessionary or expansive trends in the economies of the world in which the
Company operates.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that may
arise after the date hereof.
SOURCE The Stanley Works
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Related links:
http://www.StanleyWorks.com
http://www.prnewswire.com/comp/874363.html /
CONTACT:
Gerry Gould - VP, Investor Relations,
+1-860-827-3833, ggould@stanleyworks.com
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